UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                    Washington, DC 20549

                         FORM 10-QSB
 QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE
               1934 ACT REPORTING REQUIREMENTS

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
   SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2001
Commission File No. 000-30253






                      MUSIC ETC., INC.
   (Exact name of registrant as specified in its charter)







Nevada                                            88-0426887
(State of organization) (I.R.S. Employer Identification No.)

8764 Carlitas Joy Court, Las Vegas, NV 89117
(Address of principal executive offices)

Registrant's telephone number, including area code (702) 228-4688

Check whether the issuer (1) filed all reports required to
be file by Section 13 or 15(d) of the Exchange Act during
the past 12 months and (2) has been subject to such filing
requirements for the past 90 days.  Yes X

There are 6,000,000 shares of common stock outstanding as of
September 30, 2000.



                 PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

                        TABLE OF CONTENTS


                                                            PAGE
     Independent Auditors Report                               1

     BALANCE SHEET                                             2

     STATEMENT OF OPERATIONS                                 3-4

     STATEMENT OF STOCKHOLDERS' EQUITY                         5

     STATEMENT OF CASH FLOWS                                 6-7

     NOTES TO FINANCIAL STATEMENTS                          8-11


                  INDEPENDENT AUDITORS' REPORT



Board Of Directors

Music Etc., Inc.

Las Vegas, Nevada



     I have audited the accompanying balance sheets of Music
Etc., Inc., (a development stage company), as of March 31, 2001
and March 31, 2000 and the related statements of stockholders'
equity for March 31, 2001 and statements of operations and cash
flows for the three months ended March 31, 2001 and the two years
ended December 31, 2000 and December 31, 1999 and the period
September 20, 1993 (inception) to March 31, 2001. These financial
statements are the responsibility of the Company's management. My
responsibility is to express an opinion on these financial
statements based on my audit.
     I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates
made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a
reasonable basis for my opinion.
     In my opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Music Etc., Inc., as of March 31, 2001 and March 31, 2000 and
the related statements of stockholders' equity for March 31, 2001
and statements of operations and cash flows for the three months
ended March 31, 2001 and the two years ended December 31, 2000
and December 31, 1999 and the period September 20, 1993
(inception) to March 31, 2001 in conformity with generally
accepted accounting principles.
     The accompanying financial statements have been prepared
assuming the Company will continue as a going concern. As
discussed in Note 5 to the financial statements, the Company has
had no operations and has no established source of revenue. This
raises substantial doubt about its ability to continue as a going
concern. Management's plan in regard to these matters are also
described in Note 5. The financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.


/s/ Kurt D. Saliger
Kurt D. Saliger C.P.A.
May 4, 2001

                        MUSIC ETC., INC.
                  (A Development Stage Company)
                          BALANCE SHEET

                             ASSETS

<TABLE>
<S>                                <C>               <C>
                                        March            March
                                       31, 2001         31, 2000
                                     ------------     -----------
CURRENT ASSETS
Cash                                       $    0            $    0
                                          -------           -------
TOTAL CURRENT ASSETS                       $    0            $    0
                                          -------           -------

     TOTAL ASSETS                          $    0            $    0
                                          -------           -------
</TABLE>
              LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<S>                                <C>               <C>
CURRENT LIABILITIES

     Officers Advances (Note #8)        $   3,267           $   267
                                      -----------         ---------
TOTAL CURRENT LIABILITIES               $   3,267           $   267
                                      -----------         ---------

STOCKHOLDERS EQUITY (Note #4)

Preferred Stock, $0.001 Par Value
Authorized 10,000,000 Shares
Issued and Outstanding
At March 31, 2001- None                     $   0

Common stock, $.001 par value
authorized 50,000,000 shares
issued and outstanding at
March 31, 2000 - 6,000,000 shares                          $  6,000
March 31, 2001 - 6,000,000 shares           6,000

   Additional paid in Capital              -2,315            -2,315

   Deficit Accumulated during
   development stage                       -6,952            -3,952
                                          -------            ------

TOTAL STOCKHOLDERS' EQUITY             $   -3,267          $   -267
                                     ------------        ----------
TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY                         $   0             $   0
</TABLE>
The accompanying notes are an integral part of these financial
statements
                              - 3 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)

                     STATEMENT OF OPERATIONS

<TABLE>
<S>                  <C>            <C>           <C>
                         Three          Three
                        Months         Months       Sept. 20,
                                                      1993
                         Ended          Ended      (Inception)
                         March          March       To March
                       31, 2001       31, 2000      31, 2001
                        ------         ------        -------

INCOME
Revenue                     $   0           $   0         $   0
                           ------          ------         -----
TOTAL INCOME                    0               0             0

EXPENSES

 General, Selling
 and Administrative         $   0           $   0     $   6,952
                        ---------         -------     ---------

Amortization                    0               0             0
Total Expenses              $   0           $   0    $   -6,952
                        ---------         -------     ---------
NET PROFIT (LOSS)            $  0            $  0     $  -6,952
                        ---------         -------     ---------
NET PROFIT (LOSS)             Nil             Nil       -0.0012
per share -(Note 2)
                        ---------         -------    ----------

AVERAGE NUMBER OF       6,000,000       6,000,000     6,000,000
SHARES OF COMMON
STOCK OUTSTANDING
                        ---------       ---------     ---------
</TABLE>
The accompanying notes are an integral part of these financial
statements

                              - 4 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)

               STATEMENT OF OPERATIONS (Continued)

<TABLE>
<S>                      <C>             <C>            <C>
                                                         Sep. 20, 1993
                           Year Ended     Year Ended      (Inception)
                          December 31,   December 31,      to March
                              2000           1999          31, 2001
                            --------       --------        ---------
INCOME
Revenue                          $  0             $  0             $  0
                                -----           ------            -----
TOTAL INCOME                        0                0                0

EXPENSES

 General, Selling
 and Administrative          $  3,000           $  267         $  6,952
Amortization                        0                0                0
                              -------           ------        ---------

 Total Expenses              $  3,000           $  267         $  6,952
                              -------            -----        ---------
NET PROFIT (LOSS)            $ -3,000          $  -267        $  -6,952
                              -------            -----        ---------
NET PROFIT (LOSS)             -0.0005              Nil         $-0.0012
per share -(Note #2)
 Basic and diluted


AVERAGE NUMBER OF
SHARES
OF COMMON STOCK             6,000,000        6,000,000        6,000,000
OUTSTANDING
                            ---------        ---------        ---------
</TABLE>














 The accompanying notes are an integral part of these financial
                           statements

                              - 5 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)


          STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY


<TABLE>
<S>                   <C>           <C>           <C>            <C>
                                                    Additional     Accumu-
                         Common         Stock        paid-in        lated
                         Shares        Amount        Capital       Deficit
                         -------      --------       --------      --------

Balance,
December 31, 1998          25,000        $  3,685          $   0    $  -3,685

Changed from no par
Value to $0.001
September 21, 1999                         -3,660         +3,660

Forward Stock Split
240 to 1
September 21, 1999      5,975,000          +5,975         -5,975

Net loss
December 31, 1999                                                        -267
                       ----------        --------      ---------    ---------

Balance,
December 31, 1999       6,000,000        $  6,000      $  -2,315    $  -3,952

Net loss
December 31, 2000                                                      -3,000
                       ----------        --------      ---------    ---------

Net Loss
March 31, 2001                                                              0

Balance,
March 31, 2001          6,000,000        $  6,000      $  -2,315    $  -6,952
                       ----------        --------      ---------    ---------
</TABLE>











The accompanying notes are an integral part of these financial statements

                              - 6 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)

                     STATEMENT OF CASH FLOWS

<TABLE>
<S>                   <C>          <C>            <C>
                         Three         Three
                        Months        Months       Sept. 20, 1993
                         Ended         Ended        (Inception)
                        March,         March          to March
                       31, 2001      31, 2000           2001
                       --------      --------         --------
CASH FLOW FROM
OPERATING ACTIVITIES

Net Loss               $ -1,000          $  -267          $ -6,952

Adjustment to
reconcile
net loss to net cash
provided by operating
activities

Amortization                  0                0                 0
Officers Advances             0                0             3,267
                        -------          -------           -------

Net cash used in
operating Activities      $   0            $   0         $  -3,685

CASH FLOWS FROM
FINANCING ACTIVITIES
Issue Common Stock            0                0             3,685

Net increase
(decrease) in cash        $   0            $   0             $   0

Cash, beginning
of period                     0                0                 0


Cash, end of period       $   0            $   0             $   0
                         ------           ------           -------
</TABLE>


 The accompanying notes are an integral part of these financial
                           statements

                              - 7 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)


               STATEMENT OF CASH FLOWS (CONTINUED)
<TABLE>
<S>                      <C>             <C>             <C>
                                                         Sep. 20, 1993
                           Year Ended      Year Ended     (Inception)
                          December 31,    December 31,      to March
                              2000            1999          31, 2000
                           ----------      -----------    ------------
CASH FLOW FROM
OPERATING ACTIVITIES
Net Loss                      $  -3000           $  -267      $  -6,952

Adjustment to reconcile
net loss to net cash
provided by operating
activities

Amortization                         0                 0              0
Officers Advances                 3000               267          3,267
                                ------            ------        -------

Net cash used in
operating Activities             $   0             $   0      $  -3,685

CASH FLOWS FROM
FINANCING ACTIVITIES
Issue Common Stock                   0                 0          3,685
                                ------            ------        -------
Net increase
(decrease) in cash               $   0             $   0          $   0


Cash, beginning
of period                            0                 0              0
                                ------            ------         ------

Cash, end of period              $   0             $   0          $   0
                                ------            ------         ------
</TABLE>




The accompanying notes are an integral part of these financial
statements

                              - 8 -

                        MUSIC ETC., INC.
                  (A Development Stage Company)


                  NOTES TO FINANCIAL STATEMENTS

                March 31, 2001 and March 31, 2000



NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY

     The  Company was incorporated September 20, 1993, under  the
     laws  of the State of Nevada.  The Company was organized  to
     engage in any lawful activity.  The Company currently has no
     operations  and in accordance with SFAS #7, is considered  a
     development stage company.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Accounting Method

          The Company records income and expenses on the accrual
          method.

     Estimates

          The  preparation of financial statements in  conformity
          with  generally accepted accounting principles requires
          management  to  make  estimates  and  assumptions  that
          affect  the  reported amounts of assets and liabilities
          and disclosure of contingent assets and liabilities  at
          the  date  of the financial statements and the reported
          amounts  of  revenue and expenses during the  reporting
          period.   Actual  results  could  differ   from   those
          estimates.

     Cash and equivalents

          The Company maintains a cash balance in a non-interest-
          bearing  bank that currently does not exceed  federally
          insured  limits. For the purpose of the  statements  of
          cash  flows,  all  highly liquid investments  with  the
          maturity of three months or less are considered  to  be
          cash  equivalents. There are no cash equivalents as  of
          March 31, 2001.





                              - 9 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)


            NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                March 31, 2001 and March 31, 2000


 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     Income Taxes

          Income  taxes  are  provided for  using  the  liability
          method  of  accounting in accordance with Statement  of
          Financial  Accounting Standards  No.  109  (SFAS  #109)
          "Accounting for Income Taxes". A deferred tax asset  or
          liability  is  recorded  for all  temporary  difference
          between  financial  and  tax  reporting.  Deferred  tax
          expense  (benefit) results from the net  change  during
          the year of deferred tax assets and liabilities.

     Reporting on Costs of Start-up Activities

          In  April  1998,  the American Institute  of  Certified
          Public  Accountants issued Statement of  Position  98-5
          ("SOP   98-5"),  "Reporting  the  Costs   of   Start-up
          Activities"  which provides guidance on  the  financial
          reporting  of start-up costs and organizational  costs.
          It   requires   costs   of  start-up   activities   and
          organization costs to be expensed as incurred.  SOP 98-
          5   is  effective  for  fiscal  years  beginning  after
          December  15, 1998, with initial adoption  reported  as
          the   cumulative  effect  of  a  change  in  accounting
          principal.

     Loss Per Share

          Net  loss  per  share  is provided in  accordance  with
          Statement  of  Financial Accounting Standards  No.  128
          (SFAS  #128) "Earnings Per Share". Basic loss per share
          is  computed  by  dividing losses available  to  common
          stockholders by the weighted average number  of  common
          shares outstanding during the period. Diluted loss  per
          share  reflects  per  share  amounts  that  would  have
          resulted if dilative common stock equivalents had  been
          converted  to common stock. As of March 31,  2001,  the
          Company  had no dilative common stock equivalents  such
          as stock options.



                             - 10 -



                        MUSIC ETC., INC.
                  (A Development Stage Company)


            NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                March 31, 2001 and March 31, 2000


 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     Year End

         The  Company  has selected December 31st as  its  fiscal
         year-end.


     Year 2000 Disclosure

          The year 2000 issue had no effect on this Company.


NOTE 3 - INCOME TAXES

     There  is no provision for income taxes for the period ended
     December  31, 2000.  The Company's total deferred tax  asset
     as of March 31, 2001 is as follows:

        Net operation loss carry forward              $  6,952
        Valuation allowance                           $  6,952
        Net deferred tax asset                            $  0

     The federal net operating loss carry forward will expire  in
     2017 to 2019.















                             - 11 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)

            NOTES TO FINANCIAL STATEMENTS (CONTINUED)

            September 30, 2000, and December 31, 1999

NOTE 4 - STOCKHOLDERS' EQUITY

     Common Stock

     The  authorized common stock of the corporation consists  of
     50,000,000, shares with a par value $.001 per share.

     On July 27, 1995, the Company issued 20 shares of its no par
     value  common stock in consideration of $200 in cash to  one
     of its directors.

     On July 27, 1997, the Company issued 24,980 shares of its no
     par value common stock in consideration of $5,996.00 in cash
     to three additional directors.

     On  September  21,  1999, the State of Nevada  approved  the
     company's   restated   Articles  of   Incorporation,   which
     increased its capitalization from 25,000 common shares of no
     par  value to 50,000,000 common shares with a par  value  of
     $.001 and added 10,000,000 preferred shares with a par value
     of $.001.

     On  September 21, 1999, the company forward split its common
     stock  240:1,  thus  increasing the  number  of  outstanding
     common shares from 25,000 to 6,000,000 shares.

     Preferred Stock

     The  authorized preferred stock of the corporation  consists
     of 10,000,000 shares with a par value of $0.001 per share.

NOTE 5 - GOING CONCERN

The  Company's financial statements are prepared using  generally
accepted  accounting principles applicable  to  a  going  concern
which  contemplates the realization of assets and liquidation  of
liabilities  in  the  normal  course of  business.  However,  the
Company  does not have significant cash or other material assets,
nor does it have an established source of revenues sufficient  to
cover  its operating costs and to allow it to continue as a going
concern.   The   stockholders/officers  and  or  directors   have
committed  to  advancing  the  operating  costs  of  the  Company
interest free.




                             - 12 -
                        MUSIC ETC., INC.
                  (A Development Stage Company)


            NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                March 31, 2001 and March 31, 2000


NOTE 6 - RELATED PARTY TRANSACTIONS

     The  Company  neither owns nor leases any real  or  personal
     property. An officer of the Company provides office services
     without  charge. Such costs are immaterial to the  financial
     statements and accordingly, have not been reflected therein.
     The  officers and directors of the Company are  involved  in
     other  business  activities and may in  the  future,  become
     involved  in  other business opportunities.  If  a  specific
     business  opportunity becomes available,  such  persons  may
     face  a conflict in selecting between the Company and  their
     other  business interests. The Company has not formulated  a
     policy for the resolution of such conflicts.


NOTE 7 - WARRANTS AND OPTIONS

     There are no warrants or options outstanding to acquire  any
     additional shares of common or preferred stock.

NOTE 8 - OFFICERS ADVANCES

     While  the Company was seeking additional capital to advance
     it's  Business Plan, an officer of the Company has  advanced
     funds on behalf of the Company to pay for any costs incurred
     by it.  These funds are interest free.














                             - 13 -

       KURT D. SALIGER, C.P.A. Certified Public Accountant




                                                       May 8,2001


To Whom It May Concern:

     The firm of Kurt D. Saliger, C.P.A., Certified Public
Accountant consents to the inclusion of their report of May 04,
2001 on the Financial Statements of Music Etc., Inc., as of March
31, 2001 in any filings that are necessary now or in the near
future with the U.S. Securities and Exchange Commission.




Very truly yours,

Kurt D. Saliger
Certified Public Accountant




ITEM 2.   MANAGEMENT'S PLAN OF OPERATION

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS

This  statement  includes  projections  of  future  results   and
"forward-looking statements" as that term is defined  in  Section
27A  of  the  Securities Act of 1933 as amended (the  "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934  as
amended (the "Exchange Act"). All statements that are included in
this  Registration Statement, other than statements of historical
fact,   are   forward-looking  statements.  Although   Management
believes that the expectations reflected in these forward-looking
statements  are  reasonable, it can give no assurance  that  such
expectations  will prove to have been correct. Important  factors
that  could  cause actual results to differ materially  from  the
expectations are disclosed in this Statement, including,  without
limitation,   those  expectations  reflected  in  forward-looking
statements contained in this Statement.

                        Plan of Operation

The  Company's Plan of Operation has not changed since the filing
of  its  amended Form 10-SB filed with the SEC on June 23,  2000.
The  description of the current plan of operation is incorporated
by reference to Section 2 of its amended Form 10-SB.

              Competition Music Etc. may encounter

Music  Etc.  is an insignificant participant among  firms,  which
engage  in  business combinations with financing  of  development
stage  enterprises.  There  are many established  management  and
financial  consulting companies and venture capital  firms  which
have  significantly  greater financial and  personnel  resources,
technical expertise and experience than Music Etc. In view of our
company's    limited   financial   resources    and    management
availability, it will continue to be at a significant competitive
disadvantage.

                            Employees

The Company's only employees at the present time are its officers
and  directors,  who will devote as much time  as  the  Board  of
Directors determine is necessary to carry out the affairs of  the
Company.

                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The  Company  is  not  a  party  to any  material  pending  legal
proceedings and, to the best of its knowledge, no such action has
been threatened by or against the Company.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No such matters were submitted during the most recent quarter.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

EXHIBITS

3.1   The  exhibits,  consisting of  the  Company's  Articles  of
Incorporation, are attached to the Company's Amended Form  10-SB,
filed  on  June  23,  2000. These exhibits  are  incorporated  by
reference to that Form.

3.2   The  exhibits,  consisting of  the  Company's  Bylaws,  are
attached  to the Company's Amended Form 10-SB, filed on June  23,
2000. These exhibits are incorporated by reference to that Form.

                           SIGNATURES

Pursuant  to  the  requirements of Section 12 of  the  Securities
Exchange  Act  of  1934,  the Registrant  has  duly  caused  this
registration  statement  to  be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.



                           Music Etc., Inc.



                           By: /s/ Lewis Eslick
                              Lewis Eslick, President



                           Date: May 15, 2001